Illiquid

An investment is said to be illiquid if it can't easily be turned back into cash quickly and at a low cost.

Shares in smaller companies are more likely to be illiquid than those in larger companies; they will be less easy to sell and you are likely to find that the spread or difference between the buying and selling price is much wider.

So, in other words, blue chip shares are more liquid than unquoted companies.

See also: Online share dealing service Stockmarket Centre

Last Updated: November 2007 © Moneyextra.com

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